BP and Santos explore CCS

Santos Moomba

Santos has proposed to capture CO2 from the Moomba plant in South Australia and permanently store it in geological formations of the Cooper Basin.

Since Santos has already entered front end engineering and design (FEED) on the CCS project, the new agreement could see an investment of $20 million from BP with a final investment decision targeted for the end of 2020.

Santos Managing Director and CEO Kevin Gallagher said the collaboration created the opportunity for knowledge sharing from BP’s global operations.

“We estimate the cost of this abatement at less than $30 per t and our aim is to drive these costs lower with scale and experience,” he said.

“Australia needs low-cost, large-scale abatement to maintain our position as a leading energy exporter and manufacturer of energy-intensive materials such as steel and cement, as well as to enable new industries such as hydrogen.”

The Moomba project proposes to capture 1.7 million t of CO2 currently separated from natural gas at the location’s processing plant each year, with Santos estimating the Cooper Basin’s reinjection capacity was approximately 20 million t per year for 50 years.

“Today, CCS projects globally store around 40 million tonnes per year of carbon dioxide, far short of the more than two billion tonnes of carbon dioxide the International Energy Agency forecasts that CCS projects will need to store each year by 2040 if the world is to meet its climate aspirations,” said Mr Gallagher.

“Just as private investment in renewable energy deployment was accelerated through public policy and funding over the last two decades, we now need to focus on accelerating CCS in similar ways to achieve the scale and experience that will not only drive costs down but will also deliver real scale when it comes to emissions reduction.”

BP Managing Director Exploration and Production Australia Emil Ismayilov said CCS “has an important role to play in meeting the objectives of the Paris Agreement”.

For more information visit the Santos website.

If you have news you would like featured in The Australian Pipeliner contact Managing Editor David Convery at dconvery@gs-press.com.au

Send this to a friend